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Located in the heart of the West Midlands and beaten in size only by London, Birmingham has solidified itself as a hotspot for UK property investors in the last few years. Boasting a thriving economy, impressive infrastructure developments and a diverse property market with consistent rental yields, there are plenty of reasons why now is the time to invest in buy-to-let property in this buzzing city. Property appreciation Birmingham’s house prices rose by an average of 14.9% following 2022’s Commonwealth Games, and if projections are accurate, the local housing market is set to see prices soar by 19.2% between 2023 and 2027 compared to the UK average of 8.9% over the same period. With a projected capital appreciation of approximately £51,000 by 2026 and an increase in average property value of £270,340, the potential for capital appreciation in Birmingham’s property market makes it an attractive location for long-term property investment. Affordable property prices The average property price per square foot in inner London at the end of 2023 was £724, while Birmingham’s average property price per square foot was £283,82, below the UK average of £339,43. As Birmingham’s property prices continue their upward trend, investors stand to profit from the city’s promising trajectory. Infrastructure development The recent Commonwealth Games provided a vital injection of funding and development into Birmingham, and the 20-year Birmingham Big City Plan is set to continue the area’s incredible growth and change. The next few years will see major improvements and growth in transport facilities, modern office spaces, retail outlets, leisure facilities and residential apartment buildings. A thriving business scene The professional demographic in Birmingham contributes to a strong and consistent demand for quality housing. There is a strong mix of British and international firms choosing to open or expand offices in the city, including Goldman Sachs, National Express, Sainsbury’s, Lloyds Bank, Accenture, Deutsche Bank, HSBC, the BBC and Jaguar to name a few. In addition to having the fastest growing economy in the Midlands, the number of employees in Birmingham is projected to reach 613,800 at the end of 2024. The strong job market and business opportunities drive up housing demand, cementing its appeal for buy-to-let investments. Foreign Investment Enjoying significant investments from India, the US and Germany, Birmingham has become the UK’s premier destination for foreign direct investment, generating more than 12,000 jobs in the past decade and ranking as the seventh most attractive UK city for foreign investors. Expansion of travel and connectivity Another major development on track for the city is the HS2, a high-speed railway system linking London and the Midlands which will transport passengers from the capital to Birmingham in just 49 minutes. While another Northern stretch between Birmginham and Manshester has been scrapped, Phase One is expected to open between 2029 and 2033 and will run the 215 km from London to Birmingham. Birmingham Airport’s expansion is also set to enhance the city’s economy and connect it to more people than ever before. The airport expansion includes a terminal extension and is expected to be completed in 2024, creating around 3,500 new jobs in the process. Strong rental demand With a student population of around 80,000 and a projected increase of 3.9% in the young population over the next decade, property investors can expect to benefit from strong rental yields. According to JLL projections, rental prices in Birmingham could increase by 12% over the next 5 years, making it the fastest level of growth in the country. The affordability of Birmingham property combined with strong tenant demand driven by a young population, the city’s five renowned universities and a growing professional demographic results in high rental yields for investors. Green spaces and active lifestyle Birmingham’s beautiful green spaces and outdoor activities offer an attractive lifestyle for both residents and visitors. The city boasts a wealth of parks and recreational areas, such as the Botanical Gardens, Kings Heath Park and Sutton Park amongst others. These green spaces and outdoor activities enhance the overall quality of life in the area, offering activities like climbing walls, ziplining, kayaking and archery, along with spaces for neighbours, friends and family to socialise. Contact Tailor my Property As an investor, expanding and diversifying your property portfolio with buy-to-let properties in developing and thriving areas is a smart way to ensure steady returns. That said, thorough research and market experience are essential to help identify prime locations, understand local market dynamics and assess potential risks. Tailor my Property offers a network of property, market and financial professionals who can assist with specific property and investment goals in Birmingham and the greater UK market. Get in touch today to find out more.

Why you should be investing in Birmingham property

Located in the heart of the West Midlands and beaten in size only by London, Birmingham has solidified itself as a hotspot for UK...

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The city of Manchester is one of the top locations for UK property market investors and buy-to-let properties, and there’s a long list of reasons why. The area boasts a thriving economic landscape, one of the country’s largest major student scenes, a growing population of young professionals, and significant investments in major infrastructure that translate into high demand and consistent rental yields. According to the Big Six Residential Development Report by JLL, rental prices increased by 19.6% in the 12 months leading up to June 2023, and Manchester has also enjoyed the highest growth of the UK’s six “big cities” over the past ten years, with its economy growing by 32%. Below we break down why Manchester is a prime UK property investment opportunity. The location Located in the heart of the United Kingdom, within the North of England, Manchester is one of the best connected and most accessible cities in the UK. The city’s central geographic location puts it at the heart of the Northern labour market, giving businesses in the city access to one of Europe’s largest commuter workforces. On top of having the largest travel-to-work catchment area of any regional UK city, more than 2.8 million people live within the city region and the working age population is just under 1.8 million people. The city’s world class, multimodal and integrated transport options include a comprehensive rail network, 48 kilometre outer ring road, and an international airport that serves more than 185 destinations. Manchester also offers excellent access to other major UK cities. Direct services to and from London run every 20 minutes, taking just over two hours, as well as frequent, direct trains to neighbouring areas including Leeds, Liverpool and Birmingham. Student life Manchester’s student population is one of the largest in all of Europe and with over 100,000 students in the region, a report from Zoopla in 2020 found that demand for property in the city outweighs supply by 5:1. Additionally, international students attracted by the globally renowned level of education form approximately 20% of the University population. The city also boasts an impressive graduate retention rate of 51% - the second-highest in the country after London. The vast, growing student population translates to a consistent demand for varying types of student property to suit all budgets. This includes everything from houses and city centre apartments to purpose-built accommodation on or near campuses. These properties achieve excellent returns for investors through capital appreciation and rental yields commonly found upwards of 7%. Quality of life Previously voted the ‘Most Liveable City in the UK’ and the ‘Third Best City in the World’, Manchester offers an exciting lifestyle for people of all ages and backgrounds. From the buzzing urban city centre and its international cultural attractions to the natural beauty of the Pennines and the Peak District, the city boasts access to music, performing arts, sport, leisure, history and heritage attractions. Manchester is also enjoying the benefits of large-scale government investment and development of infrastructure. The city’s new innovation district will occupy a nine-hectare site near Piccadilly Station and will include 1,350 new homes. Manchester is also part of a £160m 'Investment Zone' which is predicted to create around 32,000 jobs with public funding to be spent on the region's advanced manufacturing sector, infrastructure and businesses over the next 10 years. The initiative is expected to attract around £1.1billion of private sector investment to the region. Business opportunities Since the early days of the industrial revolution Manchester has played a key role in the UK’s economy. Today it is home to more than 2.8 million people, with an economy bigger than that of Wales or Northern Ireland, and represents the largest city region economy outside London with a gross value added (GVA) of £78.7 billion. Major international companies like Amazon, Google, Microsoft, Booking.com , Kellogg’s, Jaguar Land Rover and others have set up offices in the area. Additionally, several Manchester-born companies have flourished in recent years, including Boohoo, AO and AutoTrader. With the boom in businesses now calling the city home, easy access to other major areas and a large retention rate for young graduates, Manchester boasts a thriving job market and local economy. Contact Tailor my Property Buy-to-let property in Manchester offers investors an exciting opportunity to capitalise on an incredible location and a high, consistent demand for quality housing. For those looking to learn more about the area’s thriving market and the options available to investors, Tailor My Property has an expert network of property, mortgage and finance professionals who are able to advise and assist with a wide range of queries. Get in touch today.

Why Manchester is a prime investment opportunity

The city of Manchester is one of the top locations for UK property market investors and buy-to-let properties, and there’s a long list of...

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The Bank of England has announced that it will hold interest rates at 5.25%, marking the fifth time in a row the Rate has been frozen since it rose to its current level in August last year. Forecasts predict three cuts of 0.25 percentage points later this year, the first expected to take place in June, and according to the Bank rates will fall to 4.5% before the end of 2024. Below we break down what this means for the UK property market and mortgage rates. How do interest rates impact UK mortgages? Interest rates set by the Bank of England affect mortgage, credit card and savings rates for millions of people across the UK. These interest rates move up and down in order to control UK inflation, which has come down sharply in recent months, easing cost-of-living pressures. According to the government's English Housing Survey just under a third of households have a mortgage, and when interest rates rise or fall more than 1.4 million people without fixed rate deals see an immediate change in their monthly payments. The Bank of England says that interest rate cuts are expected soon despite last week’s announcement that they would remain at the current rate, their highest for 16 years. According to some forecasters, this means that sub-4% mortgages are back ‘on the cards’ in the coming few months. Buy-to-let UK mortgages Buy-to-let mortgages allow property owners to invest in the property market by purchasing homes in the UK to rent to tenants. The need for landlords in the UK private rented sector is currently at record highs, with the number of enquiries per home to rent still double pre-pandemic levels. This year marks a prime opportunity for more investors to explore the buy-to-let market and bridge the supply-and-demand rental gap, and there are a number of enticing mortgage options available. For example, Nationwide-owned lender the Mortgage Works has become the first buy-to-let lender in the current cycle to offer a sub-4% mortgage. The landlord-centred lender is introducing lower rates from 26 March, including a 3.99% five-year fix with a 55% loan-to-value and 3% fee. Mortgage rates for those returning to the UK The term ‘expat mortgages’ refers to mortgages for former residents who want to return and buy a property in the UK, but either don’t live there anymore, or have recently moved back. For many expats returning to the UK the option to invest in property is an enticing one, either as a safety net, an option for UK-based family, or as a potential buy-to-let property in the future. Returning expats do have a number of exciting mortgage options within the UK, and HSBC offers an opportunity to lend to UK residents based overseas at a competitive rate just over 4% if they are using the property either to return to the UK or for domestic family use. That said, expats looking for a mortgage in the UK could potentially face a few additional hurdles compared to other investors as mortgage lenders like to see a solid UK credit history and financial ties to the UK. In these instances it’s always imperative to adhere to professional guidance and advice to ensure you adjust back into the UK property market with confidence and clarity. Tailor my Property Individual banks will set their own mortgage rates and terms so it’s always highly recommended to shop around for the deal best suited to your financial needs and investment goals. Contact Tailor My Property today and connect with our expert network of financial and property professionals who can assist and advise as you explore and navigate the mortgage and property opportunities of the UK market.

UK mortgages offer exciting new opportunities for the property market

The Bank of England has announced that it will hold interest rates at 5.25%, marking the fifth time in a row the Rate has been frozen...

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March 6th saw Chancellor Jeremy Hunt deliver the government’s Spring Budget, likely the last financial statement before the next general election, and the update included significant news for UK property owners and landlords. Amidst hopes of a much-needed boost for the sector after successive interest rate rises and cost-of-living pressures, certain upcoming changes to the market could make now the perfect time to invest in UK property. Below we break down key updates from the budget. Capital Gains Tax The chancellor announced that Capital Gains Tax (CGT), a tax charged on gains made when an asset like property is sold or transferred, is to be reduced from 28% to 24% on 6 April 2024 in a bid to try and increase property transactions. It was also previously announced that the CGT free Annual Exempt Allowance (AEA), the amount of gains you can make in a tax year before they start to be taxed, will also be reduced. The AEA threshold, which is currently at £6,000 for 2023/24 tax year, will be halved to £3,000 from the 2024/25 tax year. Multiple Dwellings Relief and Stamp Duty Land Tax Multiple dwellings relief (MDR) is an opportunity in the Stamp Duty Land Tax (SDLT) regime which can reduce the amount of tax paid when buying two or more residential properties in the same or a linked transaction. According to the Chancellor the current relief system is “regularly abused” rather than encouraging investment in the property sector, and in recent years many claims by taxpayers that granny flats, annexes and outbuildings constitute separate single dwellings have come to court. MDR will no longer be applicable for transactions that complete or are substantially performed after 31 May 2024, but will continue to apply to transactions if contracts were exchanged before 7 March 2024. Landlords looking to grow their portfolios could be affected by the scrapping of multiple dwellings relief from 1 June 2024 which means the next few months might be the ideal time to move ahead with multiple property investment plans. The government commits to building more homes The Chancellor has also re-iterated the Conservative party’s commitment to build one million homes by the end of the Parliament - allocating £242 million to new house building. According to Hunt financial allocations amounting to £188 million are designated for development projects in Sheffield, Blackpool, and Liverpool among others. Addressing ongoing availability issues in the housing market, the Chancellor also declared the abolition of the furnished holiday lettings regime. This is with the intention to discourage the preference of letting properties to holidaymakers over long-term tenants. The non-dom tax status has been abolished Hunt also announced that there will be changes to the current tax regime for non-domiciled people who live in the UK and pay tax on UK earnings, while maintaining a main home overseas. As of April 2025, new foreign landlords in the UK won't be asked to pay tax on foreign income for four years but after that will be regarded the same as other UK taxpayers. The Chancellor has estimated that the new plans will raise £2.7 billion for the UK economy, but many industry experts predict that it will make investment from overseas more difficult in future, and seeking expert guidance will be vital to ensure investors and landlords get the most out of their goals for the market. Seeking professional guidance Several of the Chancellor’s updates from the Spring Budget indicate that now might be the ideal time to act on any plans for the UK property market, whether as a landlord or for your own personal requirements. For those looking to invest in the UK property market Tailor My Property has an expert network of property, mortgage, tax and finance professionals who are able to advise and assist with a wide range of specialist queries, requirements and goals. Get in touch today to find out more.

What the UK’s Spring Budget means for the property market

March 6th saw Chancellor Jeremy Hunt deliver the government’s Spring Budget, likely the last financial statement before the next general...

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Despite the UK tipping into a technical recession in the last three months of 2023, data shows that the housing market is showing signs of steady improvement. While the housing market lost momentum in 2023, impacted by high mortgage rates and a lingering cost of living crisis, new figures from property body Rightmove show that buyer interest is on the rise with the prices of homes put up for sale in Britain also rising in annual terms for the first time in six months. In fact, UK house prices rose by 0.7% in January, marking the strongest annual figure for the market since January 2023. Below we break down why confidence seems to be returning to the UK property market. Property prices are rising Rightmove’s data shows that house sales in the first six weeks of 2024 are 16% higher than over the same period last year, and 3% higher than pre-pandemic numbers. House prices rose by 0.9% in February to follow annual falls in every month since August 2023. This coincides with an uptick in activity of both buyers and sellers on Rightmove, with 7% more new listings coming to market than last year and a 7% upturn in the number of buyers enquiring. Mortgage rates have declined Between December 2021 and August 2023 the Bank of England raised the base rate 14 times from 0.1% to 5.25%, the highest level since April 2008, and the impact on the property market was widespread.These rates made it more expensive to borrow money and meant fewer potential buyers could afford mortgages. In recent months however potential buyers have been able to take advantage of mortgage rates continuing to trend down, with investors becoming more optimistic that the Bank of England will lower rates in the years ahead. Despite the UK entering a technical recession at the end of last year, the number of mortgages offered to home buyers went up from 49,300 in November to 50,500 in December, defying the normal seasonal downtrend. According to data from the Bank of England the number of remortgages approved also rose from 25,700 to 30,800 in the same period, while the interest rate paid on newly drawn mortgages dropped by 0.6% for the first time in three years. Which areas are seeing the largest changes in property price? Various UK regions and their associated property prices have responded differently to the cost of living crisis and the associated factors influencing buyer sentiment. A recent UK house price index from the estate agents Yopa reveals how different areas have been influenced. In London, house prices still remain the most expensive throughout the UK, with the cost of a property up 2.8% to around £682,000. Scotland saw the average house price increasing by 4.2%, followed by Northern Ireland (3.4%), the North West (3.2%), the West Midlands (1.5%), Yorkshire and Humber (1.3%), and the East Midlands (0.6%). The regions that saw prices decline were Wales (-0.2%), the North East (-0.9%), the South West (-1.5%), the East of England (-2.5%), the South East (-3.9%). Tailor my Property As the property market continues in an upward trajectory and shows signs of reliance despite the cost of living crisis, there are signs that challenges are on the horizon. According to Rightmove, “While the mortgage market has recovered its stability, there are growing signs that the room for lenders to reduce rates further is narrowing, and that rates will settle at elevated levels for the near future.” This means that now might be the ideal time to move ahead with long-standing property and investment plans, but consultation with a market professional is imperative to ensure you move in the right direction for your personal financial and property goals. Tailor my Property’s network of property, finance and investment professionals will be able to assist you with assessing the market and moving ahead accordingly. Get in touch today to find more.

The UK property market bounces back

Despite the UK tipping into a technical recession in the last three months of 2023, data shows that the housing market is showing signs...

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Why energy efficiency marks the future of property investment There are several factors to consider when investing in the UK’s buy-to-let property, and the latest to add to the list is that of energy efficiency. As buyers and renters grapple with the cost-of-living crisis, high energy costs and the social responsibility to reduce carbon emissions, more and more people are expressing interest in ‘green’ or more energy efficient properties. In fact, a recent survey by Legal & General found that buyers are willing to pay up to 20% more for a low-carbon property, and over 50% of people said that they would be more likely to search for a property with high energy efficiency ratings. With this new prerequisite set to become a permanent feature of the property investment landscape, now might be the perfect time to invest in ‘green’ property. What makes a property ‘Green’? There are several factors that can influence a property’s energy efficiency. Solar panels are an option that can reduce a property’s reliance on gas or carbon-generated electricity, and investing in solar panels can increase a property’s value by up to £2,722. Water conservation in property is another major green consideration, and according to the Consumer Council for Water, the average UK household uses about 145 litres of water per day, with around 109 litres per property lost per day through leakage. Incorporating sustainable materials in the building or renovation of a property also makes a property ‘greener’. These include materials that are easily produced in nature and disposed of in such a way that the impact they leave on the environment is minimal, such as bamboo, as well as recycled materials like glass, metal, or plastic. Why are energy efficient properties appealing for investors? According to recent research from property portal Share to Buy, energy efficiency is becoming a top priority for investors, with around 72% of buyers stating that it is one of the critical factors to consider when selecting a property. Recent studies from both Rightmove and Legal & General have also shown that tenants are willing to pay more in rent for an eco-friendly property. The demand for energy-efficient homes is good news for property investors, meaning that they are able to charge higher rents for energy-efficient accommodation as the demand grows. Additionally, as the market becomes more aware of the need for a more environmentally stable society, it is likely that energy efficiency could be enforced by official legislation. As recently as September 2023 there were government discussions regarding the requirement to force landlords to improve the sustainability of their properties. Rightmove's study, published in June 2023, states that a growing number of properties entering the rental market now have Energy Performance (EPC) ratings of A, B or C. Under proposed new regulations, all rental properties will eventually have to have an EPC rating of C or higher within the next few years. While this legislation did not formally pass in 2023, the next general election may result in the winning party reintroducing new EPC rules as voters demand greater regulations to protect the environment. By investing in green property ahead of proposed new legislation landlords can attract tenants or buyers faster than the rest of the market, enjoying a higher rental income and capital appreciation. What are green mortgages? As energy efficient properties become more popular, buyers are looking for lenders to reward moves to more sustainable homes with favourable mortgage terms, and certain banks are leading the charge by responding with better interest rates for green homes. As an example, buy-to-let lender Paragon Bank has added five-year fixed-rate ‘green’ products to its range of BTL (buy-to-let) mortgages. Rates start at 4.89%, available on Paragon’s 5% fee option, suitable for the purchase or remortgaging of single self-contained properties with EPCs of A-C. This increases to 4.94% for homes with lower energy efficiency ratings and 5.14% for houses in multiple occupation and multi-unit blocks. Tailor my Property Potential new legislation, household concerns about energy costs and a growing appreciation for sustainability have made energy efficiency one of the most crucial property investment considerations for 2024. Investors who recognise this opportunity can look forward to long term returns and strengthened diversity in their portfolios. To find out more about investment opportunities in the UK and how the ‘green’ movement influences buy-to-let investors, contact Tailor my Property and enquire about guidance from our expert network of property, wealth and investment professionals.

Investing in the UK’s green properties

Why energy efficiency marks the future of property investment There are several factors to consider when investing in the UK’s buy-to-let...

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With a constant demand for student housing in some of the UK’s most exciting cities, student housing and the buy-to-let market offers landlords an exciting investment prospect for 2024. In fact, according to Savills, student accommodation has consistently outperformed other sectors in the UK property market, delivering net yields ranging from 4.5% to 6.5%. Below we break down why property owners in the UK should explore the student accommodation market. Student housing attracts a consistent stream of tenants As the demand for higher education continues to increase the demand for student housing is growing alongside a shortage in rental properties available. With Savills estimating that the number of higher education applicants could reach one million by the year 2030, student housing offers a resilient market for property investment. Landlords enjoy consistent rental income With university students typically signing fixed-term contracts for an entire academic year if not longer, landlords can enjoy a consistent stream of income, often backed by parental guarantors. This paired with a shortage of student housing in certain areas ensures landlords won’t struggle to find long term, reliable tenants and a steady stream of rental income. Student property provides higher rental yields According to a study by Savills, purpose-built student accommodation has consistently outperformed other sectors in the UK property market, delivering net yields ranging from 4.5% to 6.5%. The demand for quality student accommodation in prime locations near universities allows landlords to charge higher rental rates if they wish, maximising the potential rental yield. Student property landlords can enjoy certain tax benefits Landlords of student property in the UK can be eligible for tax deductions on expenses like property management fees, maintenance costs and mortgage interest. There are plenty of potential student locations to choose from, including: Manchester Voted the best UK city to live in according to the Global Liveability Survey, Manchester’s student population is one of the largest in all of Europe. With over 100,000 students (many of them international) in the Manchester region, a report from Zoopla in 2020 found that demand for property in Manchester outweighs supply by 5:1. Boasting three top-quality universities, a thriving cultural scene and cost-friendly living for students, the city offers investment opportunities and property below the £100k mark, while also enjoying net rental yields commonly found upwards of 7%. Liverpool Ranked as the second best student city in the UK and home to an impressive five universities, Liverpool is one of the best places to buy student property in 2024. Alongside its vast 70,000 plus student population, the city is a popular student investment destination because house prices are commonly below the national average. ‍With prices commonly available below £100k and returns north of 8% net plus additional growth potential predicted to be 11.7% by 2027 according to Savills, Liverpool offers investors a great opportunity. Cardiff Voted the best university city in Wales, Cardiff has a population of around 20% students alongside four top universities, making the city a prime spot for student landlords. Cardiff itself is a city that is also experiencing a high level of regeneration with trendy new bars and restaurants popping up across the city, and development projects like Cardiff Bay attracting new business and investors to the city. Edinburgh Boasting the University of Edinburgh, one of the most prestigious universities in the UK, Edinburgh attracts  many students for the higher education opportunities and world-famous cultural scene. There are currently six universities in the city, which also boasts a vast amount of things to do, including music venues, art galleries, museums and green spaces. While Edinburgh might have slightly higher property prices, with current averages of just under £310k, projections indicate the city will offer great returns, and with predictions of a 9.5% property price rise by 2027, now might be the perfect time to move ahead with investment and buying plans. Contact a professional Overall, buying and managing student property is a smart way to diversify an investment and property portfolio and can offer steady returns. That said, thorough research and market experience are essential to help identify prime locations, understand local market dynamics and assess potential risks. Tailor my Property offers a network of property, market and financial professionals who can assist with specific property and investment goals in the student sector. Get in touch today t o find out how you can capitalise on UK student property potential in 2024.

2024 is the year to invest in UK student property

With a constant demand for student housing in some of the UK’s most exciting cities, student housing and the buy-to-let market offers...

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As January draws to a close taxpayers need to take note of the upcoming UK online tax filing deadline on the 31st. For those who are owners and landlords of property in Britain there are specific responsibilities and tax obligations to take note of, even if you are not based in the UK yourself. Below we break down what you need to know for the close of the 2022/2023 tax season. Are you obligated to pay tax in the UK as a non-resident? Non-UK residents are required to pay taxes on any income made within the UK’s borders during the tax year, and this is applicable to gains made from property ownership. Property owners need to pay tax regardless of where they are living or whether the property in the UK is being rented or sold. If you are issued a tax return by HMRC (His Majesty’s Revenue and Customs) and you have sources of taxable income or chargeable capital gains tax (i.e. property rent and sales) within the UK, you are required to provide the relevant details and assessment. If you haven’t received one but know you need to file a tax return, you’ll still need to report it to the HMRC. How to pay tax on your UK property rental income There are two main options applicable, you can either pay the tax yourself through the self-assessment option before the 31st of January, or you can choose to have your letting agent or tenant deduct the tax from monthly rental payments throughout the tax year. If you choose to pay tax on your rental income through self-assessment (the only current option available with the deadline looming) you need to fill in a NRL1i form online and send it back to HMRC. If your application is approved HMRC will tell your letting agent or tenant not to deduct tax from your rent and you’ll need to declare your income in your self-assessment tax return before January 31st. Alternatively you can opt for your letting agent or tenant to deduct the basic rate tax from your rent received and give you a certificate at the end of the tax year saying how much tax they’ve deducted. This is referred to as the Non Resident Landlord Scheme and is not applicable to rent of £100 or less per week (or £5,200 or less per year). What are UK rental income tax rates? For the 2022/23 tax year landlords will be taxed at 20% on earnings falling between the personal allowance of £12,570 and basic rate upper threshold of £50,270, and 40% on any amount between that and £150,000. Earnings over £150,000 will be taxed at 45%. Tax returns for non-residents can feel complicated as the tax you pay isn’t just based on your property specific income and capital gains, it’s based on all of your earnings. If you have a salary and other additional assets within the UK this will need to be reported and profit from your properties is then added to any other income earned. It is always imperative to consult a tax professional if you have any questions or uncertainty. What are the late filing penalties? Failure to file an assessment or pay taxes will result in penalties and other potential restrictions for landlords and property owners, so it’s important to adhere to filing deadlines. If the return is not filed by the due date (31 January 2024 for online assessments) there is an automatic non-refundable penalty of £100. When it is more than three months late, a penalty of £10 is imposed for each day the return is late, up to a maximum of ninety days. If the return is more than six months late, there will be an additional penalty of £300 or 5% of the liability, whichever is higher. There will be an additional penalty of £300 or 5% of the liability if the return is lodged more than twelve months after the deadline. Contact a tax professional Navigating UK rental and property-related taxes as a non-UK based landlord can feel daunting, so it’s important to ensure you receive professional advice and help if needed. Tailor my Property has a broad network of tax advisors and experts who can assist with specific requirements and questions tailored to your personal obligations and goals. Get in touch today to find out more.

What non-UK property owners need to know about the tax filing deadline

As January draws to a close taxpayers need to take note of the upcoming UK online tax filing deadline on the 31st. For those who are...

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2023 was a busy and sometimes unpredictable year for the UK housing market, and with 2024 marking an election year with plenty of influencing factors at play, we can anticipate more fluctuation as well as opportunity within the market. Below we cover some of 2023’s major milestones along with projections and predictions for the new year. House prices went down in 2023 According to data from Nationwide the average house price fell by 2% in the year to November 2023, likely due to a mixture of high mortgage rates, cost of living pressures and low market confidence. The average UK house price is now £283,615 compared to £286,328 a year ago, a fall of £2,713. The months September and August also saw greater annual falls of 5.3%, with the latter marking the most substantial annual drop in house prices since the aftermath of the financial crisis in 2009. House prices in 2024 Projections indicate that the fall in property prices will continue this year. Estate agent Savills predicts that prices will fall by 3% in 2024, before recovering in 2025 and rising by 3.5%. Lloyds Bank, the country’s largest mortgage lender, has forecast a further 2.4% decrease over 2024 with prices to then recover slightly in 2025. However, interest rates may also begin to fall soon, which could then drive house prices up. In its latest major announcement, the Bank of England opted to hold the base rate at its current level of 5.25%. This means that interest rates could fall quicker than expected, which could make buying a home more affordable and reverse the current downward pressure on property prices, making 2024 the ideal year to move ahead with plans to invest in UK property. How do prices differ for different types of property? The 2020 pandemic and following years have caused huge shifts in housing preferences and data from mortgage lenders has shown differences in price trends between property types. Many workers are continuing to work from home a few days a week, so there is still demand for larger properties with space for a home office. Data also indicates that in the years since 2020 the prices of detached family homes are growing much faster than those of apartments. Figures from Nationwide show that the average asking prices between 2020 and 2022 indicate detached property increased by 26%, or nearly £78,000 while flat prices increased by 13.4% on average, or £23,000. Rent prices soared in 2023 The typical private rent ended 2023 at 9.5% higher than in December 2022 and are expected to rise a further 6% in 2024 before hitting an “affordability ceiling”, according to the estate and lettings agent Savills. Overall, rents increased by nearly 6% in the first eight months of 2023, its research found, taking total growth since March 2020 when the first Covid lockdown began to 26%. This increase noticed over the past three years or so has been explained by demand for rental properties greatly outstripping supply and the trend is expected to continue throughout 2024. Which regions offer the most opportunity? Data from 2023 and predictions for 2024 indicate that the strength recorded in certain regional cities is set to continue. These are the areas currently offering great property investment opportunities: Manchester Taking first place in a “Big Six” cities report by estate agency JLL, Manchester’s economy has grown 32% over the past decade. Listed as one of the top areas for office space and student accommodation growth, Manchester has one of the biggest science graduate populations, and the city’s new innovation district will occupy a nine-hectare site near Piccadilly Station which will include 1,350 new homes. Birmingham According to data from real estate and investment firm CBRE, population growth and a large rental market gives Birmingham the biggest family home market in five years’ time. With a thriving local economy owed to job growth, business opportunities and foreign investment along with infrastructure developments like the Birmingham Airport expansion, the city offers attractive prices, strong rental yields and a young, professional demographic providing sustained demand for housing. Edinburgh Recognised as one of the most desirable places to live in the UK, Edinburgh’s hotels, offices and student accommodation are major growth sectors for Scotland’s capital, attracting a significant number of young professionals and students. The city’s strong rental demand and limited supply have contributed to increasing rent levels and consequently high rental yields for landlords and buyers investing in the area. Liverpool The latest Zoopla data reveals that Liverpool is the fastest moving market in England, with the typical seller agreeing an offer within 17 days, half the UK average. Liverpool’s substantial development in the last few years has made it an appealing choice for property investors. Recent regeneration around the docks, Everton FC’s £500 million new stadium and the nearby cruise ship terminal have brought new life and interest to the area.n The city also offers a vibrant cultural scene, some top universities and job opportunities. Contact Tailor my Property As we usher in a new year the UK property market is primed to offer investors and buyers new chances to invest in property and financial opportunities. For those looking to engage in the UK property market Tailor My Property has an expert network of property, mortgage and finance professionals who are able to advise and assist with a wide range of specialist queries. Get in touch today.

UK property market predictions for 2024

2023 was a busy and sometimes unpredictable year for the UK housing market, and with 2024 marking an election year with plenty of...

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Despite activity in the UK property market slowing for a prolonged period of 2023 due to the cost of living crisis and higher interest rates, the close of the year has seen an uptick in the market. Below we unpack which factors are behind the boost in activity and why now might be the right time to move ahead with UK property plans and investments. Interest rates are stabilising and starting to fall The Bank of England recently kept interest rates on hold at 5.25%, indicating that the series of hikes in recent years has ended, and some mortgage deals have fallen back below 5% as a result. In fact, UK property market interest rates are forecast to start falling in the next few months and could even be down to 4.5% by the year 2025, while numbers from the Bank of England indicate mortgage approvals hit an unexpected high recently, suggesting an easing in the market. According to major property entity Savills’ five year projection the Bank will start to cut interest rates in the second half of 2024, reducing its base rate to 4.75% by the end of that year, from 5.25% now. Falling interest rates generally allow the property market to open up as mortgage costs become more affordable, and as a result more buyers enter the market and the demand for houses increases. It’s a ‘buyer’s market’ Current market factors indicate that the close of the year is a ‘buyer’s market', and according to property group Zoopla, conditions are currently the best that they’ve been for buyers since the year 2018. As a result, the number of house transactions has risen by 15% on last year and the number of homes for sale is at a six-year high with an average £18,000 knocked off asking prices. According to Savills, the average UK house price is projected to fall by 3% in 2024, after a 4% drop this year While buyer demand is still not back to where it was pre-pandemic, the current market makes now a great time for buyers to move forward with purchasing and investment plans. How does the current market impact renters? The UK has been facing a housing shortage for years with an estimated 4.3 million homes affected across Britain. This property shortage has consistently placed pressure on rental prices as the current supply can’t meet demand and many households are not being able to afford their own mortgage payments. As the Government moves ahead with a plan to build 300,000 homes a year, short term projections indicate an estimated 4% rise in rental prices over the next 12 months across the UK. The lack of housing options paired with demand for rental opportunities spurred by many households moving and downsizing post-pandemic means now is an ideal time to move forward with buy-to-let property investments for potential landlords. Contact Tailor my Property As the end of 2023 marks a boost in the UK property market, potential buyers and investors are presented with a prime opportunity to move ahead with purchasing UK property. That said, there are a multitude of factors to consider when entering or investing in the property market, and seeking professional guidance is a must. Tailor my Property’s network of property professionals and financial experts can assist with a wide range of property, finance and investment related questions to help you explore this exciting time for the market. Get in touch today to find out more.

The UK housing market experiences a year-end boost

Despite activity in the UK property market slowing for a prolonged period of 2023 due to the cost of living crisis and higher interest...

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UK Chancellor Jeremy Hunt delivered his Autumn Statement to parliament last week, setting out tax and spending plans and outlining new opportunities for the UK property market in a bid to boost slowing activity. While some predictions for the Statement proved to be untrue, property investors can benefit from new plans announced by the Chancellor. ‘Investment zones’ provide new opportunities for the UK property market The Chancellor has announced the details of a £160m 'Investment Zone' in Manchester which is predicted to create around 32,000 jobs as public funding will be spent on the region's advanced manufacturing sector, infrastructure and businesses over the next 10 years. As a result, this initiative is expected to attract around £1.1billion of private sector investment to the region, making now a prime time for property investors to consider the Manchester area. The same initiative is expected to create more than 30,000 jobs and attract £5.5 billion of investment over 11 years in the West Midlands, another ‘Investment Zone’ demarcated by the Chancellor. The zone will cover the region but will be focused on three specific sites, namely Warwickshire, a Birmingham Knowledge Quarter and a Wolverhampton Green Innovation Corridor. Additionally, sites within the Warwickshire and Birmingham areas will be offered tax relief and business incentives such as funding roads and power facilities. Initially announced in March in the Spring Budget, the ’Investment Zones’ also include the north-east, South Yorkshire, West Yorkshire, East Midlands, Teesside and Liverpool. These regions are forecast to see growth over the next decade thanks to the initiative and public funding, and property investors are presented with an opportunity to investigate these regions as they develop and grow. Stamp duty thresholds stay the same There was speculation around whether the government would make further changes to stamp duty land tax, with an increased threshold and more help for first-time buyers initially being discussed. The Chancellor has however decided to stick with the current thresholds that will remain in place until March 2025. Under these rates, property buyers still pay no tax on the first £250,000 of their purchase. Self-employed landlords might benefit from tax cuts Landlords who are self employed can now benefit from new tax cuts that will affect around two million people in the UK. The cuts include an abolishment of class 2 national insurance for self employed people earning more than £12,570 a year. This means that affected self employed people will not need to pay a current compulsory charge of £3,45 a week, saving around £192 a year. According to the 2021 English Private Landlord survey, around 39% of landlords with five or more properties were self employed, so landlords with larger portfolios will more likely be affected. Treasury aims to assist tenants As a result of the Statement the National Treasury has pledged to increase the Local Housing Allowance, with rent currently accounting for more than half the living costs of tenants on the lowest incomes. This means the Housing Allowance will increase to cover the lowest 30% of rents across the country which is estimated to give 1.6 million households an average of £800 in extra support next year. New measures to support house building As tenant demand for properties continues to increase and availability of rental stock struggles to keep up, the Autumn Statement included some proposed plans aimed at house building. In a move to unlock more than 40,000 new homes and ease demand on the housing market the Chancellor promised to invest over £110 million in the industry, and additionally said he would invest over £32 million to ease planning backlog and develop new housing in city hubs such as Cambridge, London and Leeds. Hunt also promised a consultation into new permitted development rights which would allow any house to be divided into two flats, provided the exterior remains unaffected. First time buyers can benefit from the Mortgage Guarantee Scheme The Mortgage Guarantee Scheme, which was expected to be closed to new accounts on December 31 2023, has been extended until the end of June 2025. The scheme encourages lenders to offer mortgages with a 95% loan-to-value and is designed to help first-time buyers with smaller deposits. Through the initiative, which was launched during the Covid pandemic, buyers can put down 5% of the total value of a home worth up to £600,000 as a deposit, while the remaining 95% is covered by a mortgage. While there are still limitations applicable to buyers, the scheme does create opportunity for first time buyers who are otherwise overwhelmed by the market. Seeking professional guidance For those looking to invest in the UK property market and the many opportunities presented in the Autumn Statement, Tailor My Property has an expert network of property, mortgage and finance professionals who are able to advise and assist with a wide range of specialist queries. Get in touch today to find out more.

The UK Autumn Statement creates new property investment opportunities

UK Chancellor Jeremy Hunt delivered his Autumn Statement to parliament last week, setting out tax and spending plans and outlining new...

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Particularly in overseas investor markets, the UK’s property sector has historically been dominated by London, with the capital enjoying an overwhelmingly disproportionate level of marketing from developers and property agents; and, in turn, demand from buyers drawn by their familiarity to the city, and their view of the UK as a monocentric market. To an extent, we continue to see this trend play out. According to Benham and Reeves, there are 280,021 homes in the UK registered to foreign owners, accounting for almost 3% of the total UK housing supply. Of these, 103,425 are located in London – 36.9% of the total supply. However, that figure represents a downward shift in London’s representation over the last few years. Of the 10 local authorities that have seen the greatest percentage increase in foreign ownership over the last year, for example, none are in London, with the North-West and West Midlands in particular seeing their market shares grow. What we are actually seeing then, is a move away from the typical monocentric pattern of investment in the UK, towards a more regionally dispersed pattern of property ownership. In this article, we examine in more detail and factors and dynamics at play that are giving rise to this trend. Diversification in Search of Yield London represents the archetypal reliable long-term market, where properties have exceptionally strong occupancy rates. It is also true that, over the past 12 months, rental prices in London have encountered unprecedented growth, rising by 6.8% year-on-year to October according to Zoopla. Nevertheless, London rental yields in percentage terms still trail behind the UK, with an average of 4.7% versus 5.04% for the country as a whole. Indeed, breaking this down further by regions, London actual trails behind every other region in this regard: This is because rental yields cannot keep up with price rises, given there is only so much tenants can afford to pay. As a result, higher priced properties tend to have lower rental yields and, given London is home to the highest average prices in the UK, the inverse is true for its yield. This has become more pertinent in today’s high-interest environment. Paying lower interest rates, investors can absorb a lower yield as there is a greater chance running costs and monthly repayments will still be covered by the rent. However, when that interest rate rises, the likelihood of facing a shortfall on running costs grows. As a result, investors are increasingly sensitive to rent and turning towards alternative locations to capitalise on higher yields. Given the widespread shortage of rental properties currently, they are able to do so without sacrificing strong levels of occupancy. This is particularly true of core regional cities, with prospective renters returning increasingly to their offices as opposed to working from home, and therefore seeking more central places to live. Indeed, we are also seeing owner-occupiers who bought homes on city fringes during the covid pandemic opt to sell and rent again in city centres, overstretched given the rise in interest rates and less inclined to work from home. This means that in cities such as Manchester, Birmingham, and Liverpool, it is easy to find yields nowadays averaging 6%, whilst also being rented from the first month of occupancy. Not only that, but rents are growing faster than in the capital – according to JLL, rents in Manchester have grown by 19.6% year-on-year – the largest increase of any UK city in the past twelve months. Political Support for Regional Development The market dynamics were are seeing are also being boosted by a political policy encouraging the redistribution of investment and development in the UK. The current conservative government succeeded in the last general election, largely as a result of gaining support in traditional labour strongholds, particularly in the Midlands and the North of England. This in turn has led to a refocus on these areas, and has given birth to the Levelling Up campaign. Part of a much wider policy to improve jobs, health, and the economies of regional areas in the UK, housing – and in particular incentivising the building of good quality homes – has played a highly prominent role. Thus far, the North-West and Midlands have been the core benefactors through multiple rounds of funding: Indeed, this prominence of the North-West has been seen over a much longer term, with the region being at the core of the earlier Northern Powerhouse movement. With a much clearer focus on core regional cities, this in particular incentivised significant levels of investment in Manchester and Liverpool in particular, and in the case of Manchester, saw companies such as the BBC and ITV relocate their headquarters to Media City in Salford. With the need to house the influx of professionals that result, Manchester in particular has seen a proliferation of new development from globally recognised developers. Another political driver for regional growth has been the creation of Investment Zones, with 10 areas designated as recipients of substantial government funding, supporting by partnerships with the private sector, to grow around industries that would be core to the future of the UK economy. Again, the North-West has benefitted massively from this, with Liverpool and surroundings nominated as an area for life sciences, hoping to directly create 4000 new jobs in the area. Greater Manchester and the West Midlands are also earmarked for future designation. The knock-effect again is to increase the need for good-quality housing in the area, as well as create tax incentives, such as stamp duty subsidies, that directly benefit investors in the region’s real estate markets. Transport Changes Driving Growth Closely intertwined with top-down initiatives with the explicit aim of redistributing investment, the government has also committed significant funding to a series of transport initiatives that has a significant knock-on impact on regional housing markets. There has been much made of last month’s announcement to scrap phase two of the new high-speed rail network (HS2), initial intended to improve connection times between London and Manchester. However, the progress seen in phase one of HS2, connecting London and Birmingham, should not be ignored. Indeed, just this month, it was announced that the number of people employed by HS2 now surpasses 30,000, many of them in Birmingham – this in addition to a significant apprenticeship scheme set up in the city as a result of the project. In Birmingham, the effect of HS2 has been telling for a number of years, playing a seismic role in encouraging the relocation of many major businesses into the city, including HSBC and, more recently, Goldman Sachs. In turn, it has been predicted by JLL that Birmingham requires 7500 homes per year to be build to meet demand – of which less than half are currently being delivered on an annual basis. Further, it is important to note that investment set aside for HS2 phase 2 will now be reutilised towards a northern rail network, improving adding new stations and routes to increase connectivity across core cities. As part of this, £12 billion along has been set aside for a Liverpool-to-Manchester Northern Powerhouse Rail line, reducing travel times between the two to create a much more joined up North-West economic zone. The Result: Present and Future Growth Alongside high yields, the market data really speaks for itself when it comes to growth prospects for regional cities. JLL’s most recent Big Six report, for example, illustrates that all six cities have enjoyed growth over the last year – this in spite of Nationwide reporting a 3.3% drop in year-on-year prices across the UK as a whole. Of these cities, Edinburgh has led the way with 8.7% annual growth, resulting from a particularly tight supply of new build housing, followed by Manchester with a 4.9% rise in the average property value. Given ongoing support for investment, combined with investor appetite and an undersupply of adequate housing, this pattern of growth is forecast to continue. Again examining six key regional cities, JLL predict that Manchester will achieve the greatest amount of growth with a 19.6% increase in prices between 2023 and 2027. This will be closely followed by Birmingham with 19.2% growth over the time span. This compares to their forecast for the UK as a whole of 8.5% growth to the end of 2027, and 13% within central London. Whilst London, then, continues to represent a long-term stable market, the immediate market dynamics clearly paint a strong case for regional cities, which as they mature and continue to developer, are also growing with longer-term consistency. At Tailor My Property, we help clients to identify property investment opportunities across a range of markets and property types, including in core UK regional cities. If you would like to speak with a member of the team about the right investment for you, please don’t hesitate to reach out.

Making the Case for UK Regional Cities

Particularly in overseas investor markets, the UK’s property sector has historically been dominated by London, with the capital enjoying...

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